Article 1.- This Decree provides for the administrative violations, the objects of administrative sanctions, the forms of sanction, the competence and procedures of sanctions against administrative violations; the complaints and denunciations and the settlement of the complaints and denunciations concerning the sanctions against administrative violations in the field of measurement and quality of goods.

Article 2.- Scope and objects of regulation:

1. Administrative violations in the domain of measurement and quality of goods are acts in violation of the management regulations of the State concerning measurement and quality of goods committed by an organization or individual whether intentionally or unwillingly which are not serious enough to be examined for penal liability.

2. All organizations or individuals that commit administrative violations in the domain of measurement and quality of goods shall be sanctioned according to this Decree.

A foreign organization or individual that commits an act of administrative violation in the domain of measurement and quality of goods on Vietnamese territory shall also be sanctioned according to this Decree, unless otherwise stipulated in an international convention which Vietnam has signed or acceded to.

Article 3.- The application of other forms and measures of sanction outside those stipulated in this Decree shall be effected as follows:

a/ The person competent to hand the sanction can apply only the other forms and measures of sanction already defined by law;

b/Warning: this sanction applies only to minor violations, for the first time and with extenuating factors;

c/ Fines: The level of fine shall be determined on the basis of the character and seriousness of the violations and the personal records of the offender and within the prescribed framework of fines.

A violation with extenuating factors may enjoy a low fine but not lower than the lowest level in the framework of fines already stipulated.

A violation with aggravating factors may be handed the highest fine in the framework already stipulated.

d/ Depending on the character and seriousness of the violation and the personal records of the offender, the offending organization or individual may be subjected to one or several forms of additional sanction and one or many of the following measures:

- Stripping for a limited or unlimited time of the permits, certificates and other papers issued by competent State agencies in the domain of measurement and quality of goods. If he or she detects that the permit issued does not fall within the competence of the issuer or the permit contains provisions contrary to law, the person with sanctioning competence shall have to retrieve it immediately and report it to the competent State agency.

- Confiscation of evidences and means used in the administrative violation and within the limit prescribed by law.

- Temporary suspension of business activities if the violation is deemed liable to affect the safety, hygiene and environment and the economy; temporary suspension of the production, repair and test of the means of measurement which violate the Ordinance on Measurement; suspension of the use or the circulation of the illegal means of measurement or goods which have been packaged not in conformity with the quantity prescribed by measurement norms.

- Forcible implementation of measures to overcome the pollution of living environment, spread of disease caused by the administrative violation.

- Forcible compensation for the damage caused by the administrative violation.

- Forcible destruction of the agents causing damage to human health.

e/ Principles for compensation of damage:

The compensation of damage caused by administrative violations in the domain of measurement and quality of goods is effected on the principle between the offender and the victimized party. For the material damage caused by an administrative violation of measurement and quality of goods valued up to 1,000,000 VND, if the two parties cannot agree on the compensation, the person with sanctioning competence shall decide the level of compensation. If the damage exceeds 1,000,000 VND, the case shall be settled according to the civil legal proceedings.

Article 4.- The statute of limitation for a sanction against administrative violation in the domain prescribed in this Decree is one year from the date the violation is committed. This limitation shall be two years for the violations in the domain of production and trading of faked goods, trading of exports and imports which come under State control of the quality. Within that time limit if the offending individual or organization commits a new violation or deliberately evade or obstructs the sanction, the aforesaid limitation shall no longer apply.

The offending individual or organization shall be regarded as not yet subject to administrative sanction for one year after this individual or organization completes the implementation of the sanction or has not relapsed from the date when the implementation of the sanction has become ineffective.

Article 5.- In case the violations of legislation on measurement and quality of goods show signs of components of crime and are likely to cause serious consequences to lives, hygiene and environmental safety, or the property of the State and the people, the handling agency shall have to send the dossier to the criminal investigative agency for handling in accordance with the provisions of the Penal Code.

Chapter II

ACTS OF ADMINISTRATIVE VIOLATION IN THE DOMAIN OF MEASUREMENT AND QUALITY
OF GOODS -- FORMS AND LEVELS OF SANCTION

Section 1. ACTS OF ADMINISTRATIVE VIOLATION IN THE DOMAIN OF MEASUREMENT, FORMS AND LEVELS OF SANCTION:

Article 6.- A violation of the regulations on measurement in the production of the measurement means which must be expertised by the State shall be subject to the following sanctions:

1. Warning or a fine of 100,000 VND to 500,000 VND for one of the following acts:

a/ Producing means of measurement without license of production at the State management agency on measurement;

b/ Using a license for production of a measurement means which has expired its validity;

c/ Producing a measurement means before its model is approved.

2. A fine of 500,000 VND to 2,000,000 VND for one of the following acts:

a/ Forcible registration for model or production license of measurement means within a certain time limit but failing to register after expiry of that time limit;

b/ Failing to carry out initial test use of the measurement means before taking the goods out of the store or before putting it into use;

c/ Lending the license of this measurement means to another person.

3. A fine of 2,000,000 VND to 5,000,000 VND for the act of producing a measurement means not up to mark for measurement (failing in the test measurement).

4. A fine of 5,000,000 VND to 20,000,000 VND for one of the following acts:

a/ Producing a measurement means without writing or carving on it truthfully the regulations on lawful units of measurement;

b/ The measurement means of the production establishments assigned to check the means does not meet the registered technical norms.

5. Additional sanctions and other measures with regard to the acts of violations prescribed in this Article:

a/ A violation of Item 1 and Point a of Item 2 of this Article shall lead to the temporary suspension of the production until the procedures for registration of license are completed;

b/ A violation of Point b, Item 2 of this Article shall lead to the forcible suspension of the circulation of the goods until the initial expertise is completed;

c/ A violation of Item 3 and Point b of Item 4 of this Article shall lead to the forcible repair and readjustment of the measurement means already produced in order to make it comply with the registered technical norms;

d/ A violation of Point a of Item 4 of this Article shall lead to the confiscation or destruction of the measurement means on which the inscriptions or carvings do not comply with the norms on legal measurement units.

Article 7.- A violation of the regulations on measurement in the repair of the measurement means which must be expertised by the State shall be subject to the following sanctions:

1. Warning or a fine of 100,000 VND to 500,000 VND for one of the following acts:

a/ The repair of the means does not comply with the contents already registered at the State managerial agency on measurement;

b/ Failure to effect the initial expertise.

2. A fine of 500,000 VND to 2,000,000 VND for the acts of repair of the measurement means without registering at the State managerial agency for measurement.

3. Additional sanctions and other measures against violations of this Article:

a/ A violation of Point b, Item 1 of this Article shall lead to the forcible carrying out of the initial expertise;

b/ A violation of Item 2 of this Article shall lead to the forcible suspension of the repairs until the procedures of registration at the State managerial agency on measurement are completed;

Article 8.- A violation of the regulations on measurement on the trading of measurement means which must go through State expertise shall be subject to the following sanctions :

1. Warning or a fine of 100,000 VND to 500,000 VND for one of the following acts:

a/ Trading in measurement means of which the models have not been approved;

b/ Trading in measurement means which have not been registered for production;

c/ Trading in measurement means which have not gone through initial expertise.

2. A fine of 500,000 VND to 2,000,000 VND for acts of trading in measurement means not up to the measurement norms.

3. A fine of 2,000,000 VND to 10,000,000 VND for acts of importing measurement means without permission of the competent State managerial agency on measurement.

4. Additional forms of sanction and other measures against acts of violations of this Article:

a/ Forcible compensation for damage caused by the administrative violation;

b/ A violation of Points b and c of Item 1 of this Article shall lead to the forcible carrying out of the production registration and initial expertise;

c/ A violation of Item 2 of this Article shall lead to the suspension of the sale of the measurement means that does not meet the requirements on measurement;

d/ A violation of Item 3 of this Article shall lead to the suspension of the import until the procedures of application for permit are completed.

Article 9.- The violation of the regulations on measurement in the use of measurement means that must go through State expertise shall be subject to the following sanctions:

1. Warning or a fine of 100,000 VND to 500,000 VND for one of the following acts:

a/ Using measurement means without certificate of expertise or with an indiscernible seal of expertise or with a torn or shattered stamp;

b/ Using an expertise certificate which has expired its validity;

c/ Violating the measurement permit without causing property damage or causing no serious property damage .

2. A fine of 500,000 VND to 2,000,000 VND for one of the following acts:

a/ Using a measurement means which has not been expertised;

b/ Committing a fraudulent act in the use of expertise certificates.

3. A fine of 2,000,000 VND to 10,000,000 VND for one of the following acts:

a/ Forcible expertise of the measurement means within a given period but after which the measure is still not carried out;

b/ The measurement means does not meet the requirements in measurement.

4. A fine of 10,000,000 VND to 20,000,000 VND for a fraudulent act in the conduct of a measurement.

5. Additional sanctions and other measures against the violations of this Article:

a/ Forcible compensation for the damage caused by the administrative violation;

b/ A violation of Point a, Item 2 of this Article shall lead to the suspension of the use of the measurement means and its forcible expertise;

c/ A violation of Point b, Item 3 of this Article shall lead to the forcible suspension of the use of the measurement means in order to repair, readjust and expertise it;

d/ A violation of Item 4 of this Article shall lead to the forcible suspension and stripping for six months of the right to use the certificate of expertise of the measurement means.

Article 10.- A violation of the regulations on measurement in the production of packaged goods according to quantity norms indicated on the package shall be subject to the following sanctions:

1. Warning or a fine of 100,000 VND to 500,000 VND for failing to indicate the prescribed quantity on the package.

2. A fine of 500,000 VND to 2,000,000 VND for producing packaged goods which fall short of the quantity indicated on the package.

3. A fine of 2,000,000 to 10,000,000 VND for an act of fakery or fraudulence in the inscriptions on the label or on the package which cause misunderstanding about the real quantity of the goods inside the package.

4. Additional sanctions and other measures against violations of this Article:

a/ Compensation for the damage caused by the administrative violation;

b/ A violation of Items 2 and 3 of this Article shall lead to the temporary suspension of production and forcible repackaging in conformity with the posted quantity.

Article 11.- A violation of the regulations on measurement in the trading of packaged goods (produced and packaged by industrial methods) with a prescribed quantity shall be subject to the following sanctions:

1. Warning or a fine of 50,000 to 200,000 VND for an act of trading of goods without posting the quantity on the package as prescribed.

2. A fine of 200,000 VND to 1,000,000 VND for an act of trading of packaged goods which fall under the posted quantity.

3. Additional sanctions and measures against violations of this Article.

A violation of Item 2 of this Article shall lead to the forcible suspension of the circulation of the goods and forcible implementation of remedial measures.

Section 2. ACTS OF ADMINISTRATIVE VIOLATION IN THE DOMAIN OF GOODS QUALITY, FORMS AND LEVELS OF SANCTION:

Article 12.- A violation of the regulations on the publication of the quality norms and registration of goods quality in the production of goods in the categories to be registered for quality registration or the quality of which is willingly registered by the producer shall be subject to the following sanctions:

1. Warning or a fine of 100,000 VND to 500,000 VND for one of the following acts:

a/ Using a goods quality registration which has expired its validity;

b/ There have been changes in the goods compared with the contents already registered but the producer fails to inform in time to the State managerial agency on goods quality.

2. A fine of 500,000 VND to 2,000,000 VND for one of the following acts:

a/ Producing goods without quality criteria or failing to register the quality of the goods in the categories which must be registered for quality;

b/ Failing to register the quality of goods which need to be registered after a given period after expiry of that period;

c/ Producing goods with quality lower than that willingly registered by the producer.

3. A fine of 2,000,000 VND to 5,000,000 VND for an act of producing goods with quality lower than that already registered.

4. A fine of 5,000,000 VND to 20,000,000 VND for an act of producing goods which belong to the categories which must comply with Vietnamese standards but the quality of which falls under the registered mark.

5. Additional sanctions and other measures against the violations of this Article:

a/ Violation of Points a and b of Item 2 of this Article shall also lead to the forcible new registration of quality;

b/ A violation of Point c of Item 2 and Item 3 of this Article shall also lead to the forcible temporary suspension of the delivery of goods and the remaking of the substandard lot of goods;

c/ A violation of Item 4 of this Article shall lead to the forcible compensation for the damage caused by the violation, forcible re-manufacture or destruction of the substandard goods likely to cause damage to human health, cause pollution to the environment, forcible overcoming of the pollution of the environment, or the spread of disease caused by the violation.

Article 13.- A violation of the regulations on the certification of standards in the production of goods shall lead to the following sanctions:

1. Warning or a fine of 100,000 VND to 500,000 VND for an act of using a certificate of standard which has expired its validity to produce goods in the categories which must be certified and has been certified as conformable to standard.

2. A fine of 500,000 VND to 2.000.000 VND for one of the following acts:

a/ Failure to register for a certificate of standardization in the production of goods which must be registered for standardization;

b/ Failure to register for a certificate of standardization of goods which must be registered for standardization within a given time-limit;

c/ Willingly producing goods with a certificate of standardization with an actual quality lower than that already certified;

d/ Producing goods which have not been certified as up to standard but which is stamped or stuck with a stamp of standardization and is advertised as having been certified as up to standard.

3. A fine of 5,000,000 VND to 20,000,000 VND for an act of producing goods in the categories listed under forcible Vietnam standard but with an actual quality lower than the already certified standard.

4. Additional sanctions and other measures against the violations of this Article:

a/ A violation of Points a and b of Item 2 of this Article shall lead to the forcible registration for a certificate of standardization within a given time limit;

b/ A violation of Point c Item 2 of this Article shall lead to the temporary forcible suspension of delivery of goods and re-manufacture of the faulty lot of goods;

c/ A violation of Item 3 of this Article will lead to the forcible compensation of the damage caused by the violation of up to 1.000,000 VND, forcible remanufacture or destruction of the substandard goods which are likely to cause damage to human health, pollution to the environment, and spread of disease, stripping of the right to use the certificate of standardization for up to six months and temporary suspension of the manufacture of such goods.

Article 14.- Violations of goods quality in trading shall be subject to the following sanctions:

1. A fine of 200,000 VND to 1,000,000 VND for one of the following acts:

a/ Failing to register goods for trading in the categories that must be registered for quality;

b/ Failing to secure a certificate for goods in trading in the categories which must be certified as up to Vietnamese standards.

2. A fine of 1,000,000 VND to 3,000,000 VND for one of the following acts:

a/ Trading in goods with actual quality lower than that already registered;

b/ Trading in goods which have expired their usage date.

3. A fine of 5,000,000 VND to 20,000,000 VND for an act of trading in goods with actual quality norms lower than that already registered or which have been certified as up to Vietnam standard but which violate the regulations on safety, hygiene and environment safety.

4. Additional sanctions and other measures against the violations of this Article:

a/ A violation of Item 3 of this Article shall lead to the temporary suspension of the circulation of the faulty goods;

b/ A violation of Item 4 of this Article shall lead to the forcible compensation for the damage caused by the violation, forcible remanufacture or destruction of the substandard goods that may cause damage to human health, pollution of the environment and the spread of disease caused by the violation.

Article 15.- A violation in the production or trading of faked goods but not serious enough as to warrant an examination for penal liability shall be subject to the following sanctions:

1. A fine of 2,000,000 VND to 10,000,000 VND for one of the following acts:

a/ Producing goods bearing the trade mark identical or similar to that of another establishment which has been given industrial copyright and without the consent of the owner of this trade mark;

b/ Producing goods with a trade mark identical or similar to that of another establishment which has registered for quality;

c/ Producing goods with utilization quality at variance with the origin, natural properties, name and utilization without however causing damage to human health or causing pollution to the environment.

2. A fine of 10,000,000 VND to 20,000,000 VND for the production of goods of which the utilization value varies with the origin, natural properties, name and use, which are noxious to human health, causes pollution to the environment or which adversely affects the prestige of the country.

3. A fine of 1,000,000 VND to 5,000,000 VND for one of the following activities:

a/ Trading in goods with a trade mark identical or similar to that of another establishment which has been granted industrial property right but which has not received the consent of the owner of this trademark;

b/ Trading in goods with a trade mark identical or similar to that of another establishment which has registered for quality;

c/ Trading in goods with utilization quality not conforming to its origin, natural properties, name and use but without being noxious to human or causing pollution to the environment.

4. A fine of 5,000,000 VND to 20,000,000 VND for the trading of goods with the utilization value which do not conform to its origin, natural properties, name and use and which is noxious to human health, causes pollution to the environment and affects the prestige of the country.

5. Additional sanctions and other measures against the violations of this Article:

a/ Forcible compensation for the damage caused by the administrative violation;

b/ Confiscation of the means of production and trading and all the goods related to the violation;

c/ A violation of Items 2 and 4 of this Article shall lead to the forcible destruction of the goods that damage human health, forcible carrying out of remedial measures against the pollution of the environment or the spread of disease caused by the violation.

Article 16.- The violations of the regulations on State control over the quality of imported and exported goods in the trading of imports and exports in the categories that must go through State quality control shall be subject o the following sanctions:

1. A fine of 500,000 VND to 2,000,000 VND for one of the following acts:

a/ Failure to register for State quality control in dealing with imports and exports in the categories subject to State quality control;

b/ Failure to come to the registration center in time to register the goods for State quality control within the prescribed time limit.

2. A fine of 2,000,000 VND to 5,000,000 VND for the trading of import and export goods with actual quality lower than the quality prescribed by the State but not yet violating the prescriptions for safety, hygiene and environmental protection.

3. A fine of 5,000,000 VND to 20,000,000 VND for one of the following acts:

a/ The goods have a low quality, violate the compulsory prescriptions for safety, hygiene and environmental protection;

b/ Deliberately evading State control over the quality of import and export goods.

4. Additional sanctions and other measures against violations of this Article:

a/ Violation of Item 1 of this Article shall lead to the forcible registration for State quality control within a given time, temporary suspension of import and export until completion of the registration procedures;

b/ Violation of Item 2 of this Article shall lead to the temporary suspension of import and export and forcible re-manufacture of the faulty lot of goods;

c/ Violation of Point a, Item 3 of this Article shall also lead to the forcible compensation for the damage caused by the administrative violation; forcible temporary suspension of import and export and circulation of the faulty lot of goods on the market, forcible remanufacture or destruction of the goods if they cause damage to human health or cause pollution to the environment.

Chapter III

COMPETENCE AND PROCEDURES FOR SANCTIONING ADMINISTRATIVE VIOLATIONS IN THE DOMAIN OF MEASUREMENT AND QUALITY OF GOODS

Article 17.- Competence for sanctioning administrative violations in the domain of standard measurement and quality of goods:

1. The specialized Inspector of the Standard - Measurement - Quality of Goods on mission has the right:

a/ To serve a warning;

b/ To order a fine up to 200,000 VND ;

c/ To confiscate evidences and means used to commit the administrative violation valued up to 500,000 VND;

d/ To force restoration of the original state which is changed by the administrative violation;

e/ To force the carrying out of measures to overcome the pollution of the living environment and the spread of disease caused by the administrative violation;

f/ To force the destruction of the agents damaging to human health.

2. The specialized Chief Inspector, the Head of the agency assigned to carry out specialized inspection in Standard, Measurement and Quality at the provincial level stipulated at the Ordinance on Measurement and the Ordinance on the Quality of Goods have the right:

a/ To serve a warning;

b/ To order a fine up to 10,000,000 VND;

c/ To confiscate the evidences and means used in the administrative violation;

d/ To strip the right to use the permit under their competence;

e/ To force the restoration of the initial state changed by the administrative violation;

f/ To force the carrying out of measures to overcome the pollution of the living environment and the spread of disease caused by the administrative violation;

g/ To force the destruction of the agents damaging to human health;

h/ To force the compensation of damage up to 1,000,000 VND caused by the administrative violation.

3. The specialized Chief Inspector of the Ministry of Science, Technology and Environment. the specialized Chief Inspector of the General Department for Measurement, Standardization and Quality under the Ministry of Science, Technology and Environment have the right:

a/ To serve a warning;

b/ To order a fine up to 20,000,000 VND;

c/ To confiscate the evidences and means used in the administrative violation;

d/ To strip the right to use the permit under their competence;

e/To force the restoration of the initial stage which has been changed by the administrative violation;

f/ To force the carrying out of measures to overcome the pollution of the living environment and the spread of disease caused by the administrative violation;

g/ To force the destruction of the agents damaging to human health;

h/ To force the compensation for the damage up to 1,000,000 VND caused by the administrative violation.

Article 18.- Competence in sanctioning administrative violations in the domain of measurement and quality of goods of the People�s Committees of various levels shall comply with Articles 26, 27 and 28 of the Ordinance on Handling Administrative Violations.

Article 19.- The competence in sanctioning the administrative violations in the domain of measurement and quality of goods of the Police, Customs and market management agencies and the other specialized inspection agencies shall comply with Articles 29, 30, 33 and 34 of the Ordinance on Handling Administrative Violations.

Article 20.- Assignment of power in handling administrative violations;

In the absence of the persons competent to handle the administrative violations stipulated at Items 2 and 3 of Article 17 of this Decree and at Articles 26, 27 and 28 and Items 3, 4, 5 and 6 and 7 of Article 29 and Items 2 and 3 of Article 30, Items 2, 3 and 4 of Article 33, Items 2 and 3 of Article 34 of the Ordinance on Handling Administrative Violations or with their empowerment, the deputy heads have the competence to handle the violations according to their competence.

Article 21.- Principles of assignment of power in sanctioning administrative violations:

1. The People�s Committees at all levels have the competence to sanction the administrative violations in the domain of measurement and quality of goods within their managerial power in the locality.

2. The specialized inspection agencies have the competence to sanction the administrative violation in the domain of measurement and quality of goods with regard to the persons and organizations under their management.

3. In case the administrative violation in the domain of measurement and quality of goods comes under the sanctioning competence of many agencies, the sanction shall be carried out by the first agency to handle the case.

Article 22.- The procedures for sanctioning the administrative violations in the domain of measurement and quality of goods shall comply with Articles 45, 46, 47, 48, 49, 50, 51, 52, 54, 55 and 56 of the Ordinance on Handling Administrative Violations.

Chapter IV

COMPLAINTS, DENUNCIATIONS AND HANDLING OF VIOLATIONS

Article 23.- Complaints, denunciations and settlement of complaints and denunciations in the domain of measurement and quality of goods;

1. Citizens have the right to denounce to the competent State agencies the administrative violations by any organization and individual and denounce the violations by the persons with competence to sanction the administrative violations in the domain of measurement and quality of goods.

2. An organization or an individual that is sanctioned for administrative violation or their legal representative has the right to protest against the person who has issued the sanctioning order within ten days from the receipt of the decision. In case the complaining organization or individual does not agree with the decision to settle the complaint, they may protest to the immediate higher level of the person who has issued that decision or initiate an administrative lawsuit at the competent court.

3. The procedure, process, time limit and competence of complaining and settling the complaint shall comply with Article 88 of the Ordinance on Handling Administrative Violations and the provisions of the Ordinance on the Procedures to Settle Administrative Lawsuits.

4. Handling of denunciations:

- A denunciation against an unlawful act of the person competent to handle administrative violations shall be examined and settled by the immediate higher level of that person.

- Upon receiving a denunciation, the person with competence to settle it shall have to examine and settle it in time and reply in writing within 15 (fifteen) days or 30 (thirty) days if it is a complicated case as from the date of receiving the denunciation.

Article 24.- Handling a violation by the person with authority to handle an administrative violation:

The person authorized to handle an administrative violation who exacts bribes, or who condones, covers up or refrains from punishing, or does not handle it in time or below the prescribed level or beyond the prescribed level, shall, depending on the character and seriousness of the violation, be subject to disciplinary measures or be examined for criminal liability. If they cause material damage, they shall have to pay compensations as prescribed by law.

Article 25.- Handling of violation in case the offender commits an administrative violation:

A person who is subject to a sanction for an administrative violation and who has an act of resisting the person on mission, who delays or evades the implementation of the sanction or takes other acts of violation shall, depending on the character, seriousness of the violation, be subjected to administrative sanction or be examined for penal liability. If they cause material damage, they shall have to pay compensation as prescribed by law.

Chapter V

IMPLEMENTATION PROVISIONS

Article 26.- This Decree takes effect one month after its signing. The provisions on the inspection of the handling of the production and trading of faked goods in Decree No.140-HDBT of April 25, 1991 of the Council of Ministers, the regulations on the handling of administrative violations in the domain of measurement and quality of goods in Decree No.327-HDBT of October 19, 1991 and Decree No.115-HDBT of April 13, 1991 of the Council of Ministers are now annulled.

Article 27.- The Ministers , the Heads of the ministerial-level agencies, the Heads of the agencies attached to the Government, the Presidents of the People's Committees of the provinces and cities directly under the Central Government shall have to implement this Decree.

On behalf of the Government

For the Prime Minister

Deputy Prime Minister

PHAN VAN KHAI